NAB business confidence index surges

There has been more evidence that Government spending and low interest rates have had an impact as the NAB's business confidence index surged in the second biggest bounce in the survey's 20-year history.

Transcript

ALI MOORE, PRESENTER: There's more evidence low interest rates and government spending are having a positive impact on business sentiment.

The NAB's business confidence index surged in the second biggest bounce in the 20-year history of the survey.

There are still more pessimists than optimists but there's been a significant pick-up in construction, manufacturing and wholesale.

Elsewhere, job ads are close to stabilising with the ANZ survey for May showing the smallest monthly fall in more than a year.

But many economists still expect the jobless rate to peak at around 8 per cent next year.